TOKYO While Japanese and Chinese officials faced off across a Beijing table in a vain attempt to end a lingering trade dispute, businessmen kept themselves busy doing what they do best -- selling. Textile stalls laden with a rainbow selection of Chinese silk, the latest in knitwear fashions and even towels -- a potential source of future friction -- were just some of the wares on display at a four-day trade fair that opened on Wednesday. Government negotiators wrapped up two days talks in Beijing with no sign of an imminent breakthrough on the dispute over tit-for-tat import curbs the two giant Asian trading partners imposed recently. But for 122 Chinese exhibitors at the bustling trade show, it was just business as usual. "Trade relations between China and Japan are expanding every day, and it is only natural that there would be some friction as a result," Sun Gang of China Council for Promotion of International Trade (CCPIT) told Reuters. "In order to deal with these problems, governments and enterprises must look at things from a long-term perspective and try to resolve the issues by talking to one another. The cooperation between the enterprises of the two countries will never be stopped." The row has escalated since China retaliated against Japan's April import curbs on spring onions, shiitake mushrooms and straw used for the tatami mats the cover the floors of traditional Japanese houses. China last month hit back with punitive tariffs on Japanese cars, mobile phones and air conditioners. Still, despite the political bickering, economists have said that the products affected so far represented only a tiny portion of trade.

Textile Exporters No Chinese exporters of the three targeted farm items hit by the "safeguard" measures were to be seen at the exhibition. A majority of the booths displayed textile products, and these could be affected if Japan's import curbs are expanded. Some domestic towel makers and necktie manufacturers have asked the Japanese government for similar measures to protect their businesses. "Obviously there will be an impact on our business," said Zhang Guojian of Hangzhou Silk Fashion Corp. "But I am certain they can resolve the problem. There is no really big dispute between China and Japan, and a resolution of the problem would benefit citizens of both countries." Even within Japan, the support for the trade curbs is far from being broad based. In fact, among the most affected have been Japanese firms who have shifted their productions to China to cut costs. "From what I gather, around 50 percent of Sino-Japanese trade involves Japanese companies' subsidiaries in China or joint ventures with Chinese firms," said Sun of CCPIT. "Japan is the third-largest investor in China, and excluding Chinese imports from the Japanese market can also be unfavorable for Japanese investors." According to Japanese Finance Ministry data, Japan's imports from China totalled 5.5 trillion yen ($44.21 billion) in calendar 2000, up from 4.5 trillion yen ($36.18 billion) a year earlier. Japanese exports to China rose to 3.2 trillion yen ($25.72 billion) from 2.6 trillion yen ($20.90 billion).